One of the largest sources of funding comes from party members and individual supporters through membership fees, subscriptions and small donations.
Political parties may be given money by organizations, businesses, individual donors and special interest groups, such as trade unions.
Increased scrutiny of donations and the long-term decline in party memberships in most western democracies are placing a greater strain on funding.
For example, in the United Kingdom and Australia, membership of the two main parties in 2006 was less than an eighth of what it was in 1950, despite significant increases in population over the same period.
[4] Rather than a contribution, the small individual donation constitutes a redirection of income tax owed without additional direct disbursement by taxpayers.
[5] In the United Kingdom, it has been alleged that peerages have been awarded to party fund contributors, with benefactors becoming members of the House of Lords and thus in a position to participate in the legislative process.
In the UK, some politicians have advocated that parties be funded by the state, a proposal that promised to give rise to debate in the country that was first to regulate campaign expenses in 1883.
[9] Frequently, parties rely on a mix of private and public funding and are required to disclose their finances to an election management body.
[5] Concerns have been raised over less overt interventions in national political party funding made by foreign governments[12] as it impugns the reputation of nation-states on the world stage; the topic remains controversial and fiercely debated[13] and defended.
The funding was allegedly aimed at executing a smear campaign against the State of Qatar, a then-rival of the UAE, and influencing the US foreign policy.